Report Questions NBA Union Head

An independent report on National Basketball Players Association executive director Billy Hunter has found the labor union's longtime leader did not engage in criminal acts but his "actions were inconsistent with his fiduciary obligations to put the interests of the Union above his personal interests."

The report was submitted simultaneously Thursday to the union, the press and the office of the U.S. Attorney for the Southern District of New York, which according to the report is conducting its own examination of the union. The report follows an eight-month investigation of Hunter by lawyers at Paul, Weiss on behalf of a special committee of the NBPA in response to allegations of nepotism, conflicts of interest and the possible misuse of funds by Hunter. Union president Derek Fisher was among those who sought the report.

*Didn't get the proper approval for the extension of his contract in 2010.

*Involved family and friends in the union's business without properly telling the organization's officers.

*Spent $22,000 of union funds on a watch for Fisher. (According to the report, Fisher was not aware at the time that union funds had been spent to purchase the watch, an assertion Hunter disputed.)

The union released a statement from Hunter which stated in part:

"While I strongly disagree with some of the findings contained in the report, I am pleased it recognized that I have not engaged in criminal acts nor was I involved in misappropriation of union funds. Regarding my contract—my third in a long tenure of the organization—it was ratified by the NBPA Executive Committee and signed by President Derek Fisher. I believe the contract and extensions are valid. I am pleased to discuss with the Player Representative board any concerns about my contract.

"In my work for the NBPA, my priority has always been to promote the interests of the players. Through the benefit of hindsight, as with any executive, there are always things that could have been done better. But on the major issue, I am pleased that this report has confirmed what I have always known and said, I did nothing illegal."

Fisher's agent was not immediately available for comment. A spokeswoman for the U.S. attorney's office in Manhattan declined to comment. Union representatives have said previously they will cooperate fully with the U.S. attorney's investigation.

A statement that accompanied the release of the 229-page report that was prepared by Paul, Weiss partner Ted Wells suggested the NBPA could part ways with Hunter if it chose to. "In our judgment the Union has no obligation to accept Mr. Hunter's current contract as valid or enforceable," the statement read. "We believe that the circumstances of the contract's formation and the lack of proper approval cast serious doubt on Mr. Hunter's ability to enforce it."

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